Sponsor by Innity

Sponsor by cwyeoh

Sponsor by Nuffnang

Wednesday, December 26, 2012

PETRONAS GAS BERHAD is engaged in separating natural gas into its components and storing, transporting and distributing such components thereof for a fee and the sale of industrial utilities. In addition to gas processing and transmission, its activities includes supply of industrial utilities, such as steam, electricity, nitrogen, compressed air, demineralised water and waste water treatment to the petrochemical complexes in the Kertih and Gebeng industrial zones. It operates six gas-processing plants, which process natural gas from the offshore fields of Terengganu. The plants have a gas production capacity of 2,060 million standard cubic feet per day (mmscfd) in addition to gas derivative products, such as Ethane, Propane, Butane, Condensates and Carbon Dioxide. In addition, it has standby units in Kertih and Paka with a total capacity of 750 mmscfd.

Revenue decreased 2.5% and was fourth consecutive quarter decreasing (lower than preceding year corresponding quarter 6.7%), eps decreased 30.8% and also lower than preceding year corresponding quarter 9.3%, cash generated from operating enough for financing expenses but still generated cash from financing and spent 4.4% of Group cash to cover investing expenses, balance sheet assets indicate Group expanding the long term assets, operating margin maintain very satisfactory level ~48%, liquidity ratio indicate very firm can meet current obligation but keep weakening, gearing ratio indicate still low liabilities risk, all accounting turnover period is good which got more cash on hand, gas processing segment got business downtrend but other segments still growth

First Support Price

19.0

Second Support Price

18.0

Risk Rating

MODERATE

Research House

OSK Target Price

17 (2012-02-23)

Maybank Target Price

20.2 (2012-09-11)

Affin Target Price

16.6 (2012-11-26)

AMMB Target Price

21.6 (2012-11-26)

CIMB Target Price

20.6 (2012-11-26)

HwangDBS Target Price

21 (2012-11-26)

MIDF Target Price

17.72 (2012-11-26)

RHB Target Price

18.47 (2012-11-26)

TA Target Price

16.75 (2012-11-26)

Kenanga Target Price

19.86 (2012-12-07)

Accounting Ratio

Return on Equity

17.33%

Dividend Yield

2.54%

Gross Profit Margin

47.30%

Operating Profit Margin

48.46%

Net Profit Margin

48.27%

Tax Rate

23.92%

Asset Turnover

0.3059

Net Asset Value Per Share

4.49

Net Tangible Asset per share

4.49

Price/Net Tangible Asset Per Share

4.21

Cash Per Share

1.24

Liquidity Current Ratio

3.3855

Liquidity Quick Ratio

3.2634

Liquidity Cash Ratio

2.8872

Gearing Debt to Equity Ratio

0.3076

Gearing Debt to Asset Ratio

0.2327

Working capital per thousand Ringgit sale

56.3%

Days to sell the inventory

21

Days to collect the receivables

32

Days to pay the payables

50

Technical Analysis

SMA 10

18.806 (Uptrend)

SMA 20

18.478 (Uptrend 4 days)

SMA 50

19.057 (Downtrend)

SMA 100

19.096 (Uptrend)

SMA 200

18.04 (Uptrend)

MACD (26d/12d)

0.079048 ( 0.073431 )

Signal (9)

-0.081961 ( 0.040252 )

MACD Histogram

0.161009 (Bullish trend 13 days)

Bolinger Upper Band

19.982

Bolinger Lower Band

16.974

My notes based on 2012 quarter 3 report (number in '000):-
- Lower revenue and pbt due to lower export volume and prices for propane and butane from Gas Processing segment and higher depreciation costs arising from review of property, plant and equipment useful life as well as higher volume of fuel gas utilised in the production of industrial gases to meet higher customers demand

- Lower pbt than FY12Q2 also due to disposal of investment in an associate through initial public offering amounting to RM100.0 million in the preceding quarter